How to Calculate a Tip
Calculating a tip is one of the most common everyday math tasks. In the United States, tipping is customary at restaurants, bars, salons, hotels, and many other service businesses. The standard tip for restaurant service ranges from 15% to 25% of the pre-tax bill amount, with 20% being the most common standard for good service.
- 1Tip amount: $85.00 x 20% = $17.00
- 2Total with tip: $85.00 + $17.00 = $102.00
- 3Per person: $102.00 / 2 = $51.00
- 4Per person tip: $17.00 / 2 = $8.50
Tip Percentage Guide
| Service Quality / Type | Tip % | On $50 Bill | On $100 Bill |
|---|---|---|---|
| Below average service | 10-15% | $5-$7.50 | $10-$15 |
| Adequate service | 15% | $7.50 | $15 |
| Good service | 18% | $9 | $18 |
| Great service | 20% | $10 | $20 |
| Exceptional service | 25% | $12.50 | $25 |
| Large party (6+) | 18-20% (often auto) | $9-$10 | $18-$20 |
| Takeout/pickup | 0-10% | $0-$5 | $0-$10 |
| Delivery | 15-20% | $7.50-$10 | $15-$20 |
| Bartender | $1-2/drink or 15-20% | - | - |
| Hair stylist | 15-25% | - | - |
Quick Tip Mental Math Tricks
- 10% tip: Move decimal one place left. $85 bill = $8.50 tip
- 15% tip: Find 10% and add half. $85 = $8.50 + $4.25 = $12.75
- 20% tip: Find 10% and double it. $85 = $8.50 x 2 = $17.00
- 25% tip: Find 10%, double it, add half. Or divide bill by 4. $85 / 4 = $21.25
- Round up: Calculate approximate tip, then round to a convenient total. $85 x 20% = $17, round total to $102 or tip to $15/$20
The standard practice is to tip on the pre-tax amount of your bill. On a $100 pre-tax bill with $8 in sales tax, a 20% tip should be $20 (based on $100), not $21.60 (based on $108). However, many people tip on the total for simplicity, and this is perfectly acceptable as it slightly increases the tip.
Tipping Etiquette in the United States
Tipping in the U.S. is not just a custom; it is a significant part of how service workers earn their income. The federal tipped minimum wage is $2.13/hour (states may be higher), meaning tips make up the majority of a server's income. While the tipping system is debated, the current reality is that tipping well directly supports the people serving you.
When to Tip More or Less
Consider tipping above 20% for large parties (extra work for the server), holidays and special occasions, complex orders or special requests, dining with children (extra cleanup), and when you received personalized or memorable service. Consider lower tips only when service was genuinely poor (not for slow kitchen times, which are not the server's fault). If you received terrible service, speak with a manager rather than leaving no tip.
Bill Splitting Tips
When splitting a bill with friends, the simplest approach is to divide the total (including tip) equally. If meals were significantly different in cost, split the bill proportionally. Many restaurants can split the bill onto multiple cards. A simple rule: each person should cover at least their share of the bill plus 20% tip, rounding up to the nearest dollar for simplicity.
